Palantir stock fell 4.3% on Friday as the Nasdaq Composite registered its biggest single-day pullback since April 2025, driven by concerns about Federal Reserve rate increases and AI valuation pressures.

Palantir (PLTR) shares declined 4.3% in Friday's session and fell as much as 5.4% intraday. The S&P 500 ended down 2.6% and the Nasdaq Composite closed down 4.2% as investors braced for possible Federal Reserve interest rate increases.

The Nasdaq Composite posted its largest single-day pullback since April 2025. AI stock valuations came under pressure following a negative market reaction to Broadcom's quarterly results, and the May jobs report—which showed 172,000 nonfarm jobs added against an 80,000-job forecast—elevated anxieties about valuation levels.

Even with Friday's decline, the Nasdaq Composite remains up roughly 32% over the last year. Palantir trades down roughly 24% year to date and down 35% from its high, making it vulnerable to sector-wide pullbacks despite recent strong business results.